On Friday, U.S. stocks in China generally performed dismal, with the Nasdaq Golden Dragon Index closing sharply down 3.1%. However, in the midst of a downward "wail", there is a Chinese stock called Shang multiplier that has flourished, rising 122% in a single day.
In fact, the stock has risen sharply for several days since it first landed on the U.S. stock market on July 14, and as of Friday's close, the stock price has soared from $7.8 to $400.25 at the issue price, an exaggerated 50-fold increase in nearly half a month. Behind this sudden rise of Chinese stocks, there is the figure of Hong Kong's giant rich Li Ka-shing.
Since its listing, the stock price of AMTD has soared
What's the mystery behind this stock?
According to public information, AMTD Group is a subsidiary of AMTD Group, which was founded in 2003 by Li Ka-shing's Cheung Kong Industrial Group and Hutchison Whampoa, the largest private independent investment bank in Asia, a leading integrated financial institution group in Hong Kong and one of the largest independent non-bank asset management companies and insurance brokers.
In August 2019, AMTD Group spun off AMTD International and listed on the New York Stock Exchange, followed by its second listing on the Singapore Exchange, becoming the first listed company in Singapore with the same share and different rights. AMTD Technology, which was listed this month, is the second listed company under AMTD Group.
AMTD Shareholding Structure Table
According to the prospectus, in the IDEA strategy of AMTD Group, the "D" plate in the formal IDEA represented by AMTD Digital Division, and the "I" sector represented investment banking and traditional financial sectors; In addition, "E" represents investment in education, while "A" refers to development in the real estate and hospitality sectors.
According to public information, AMTD is committed to building a comprehensive digital platform in Asia, focusing on the development of business areas across multiple verticals, including digital financial licenses and services, digital media content and market promotion, digital network ecosystem construction and collaboration, and strategic investment in the digital economy.
Among them, the fees and commissions of the digital financial services business and the spider web ecosystem solution business are the main sources of income of AMTD.
The price-to-earnings ratio has far exceeded the level of its peers
According to the prospectus, for the fiscal years 2019, 2020 and 2021 ended April 30, AMTD revenue was HK$14.55 million, HK$167.5 million and HK$195.8 million, respectively; In the same period, profit was 21.544 million, 158 million and HK$172 million respectively, and revenue and profit increased rapidly. Among them, the higher profit than revenue in 2019 is mainly due to the change in fair value (FVTPL).
From the perspective of stock price, after experiencing a sharp rise of dozens of times in the previous half a month, the market value of AMTD has reached 74.064 billion US dollars (about 499.5 billion yuan), and its price-earnings ratio (PE) has reached 3232 times.
For comparison, the average price-to-earnings ratio of the S&P 500 index is currently less than 20 times, while the US financial giant JPMorgan Chase has a price-to-earnings ratio of less than 9 and Morgan Stanley has a price-to-earnings ratio of 10.7.
Although the revenue and profit of AMTD have grown rapidly, it cannot be ignored that the company's performance is volatile and the main business life is short. Whether the current market valuation of The Multiplier Is Reasonable remains to be seen.
This article originated from the Financial Associated Press